Minutes of the Annual Meeting
Mayfair of McLean Homeowners Association
December 14, 2015
Agenda
1. Roll call and certification of General and Special Assessment Proxies.
2. Approval of 2014 Annual Meeting Minutes.
3. Landscape Advisor Report.
4. Financial Report and Review of the 2016 Budget.
5. Special Assessment Presentation and Maintenance Advisor Report.
6. Vote on the Special Assessment.
7. The nomination and election of one Board member to a three-year term, expiring
in 2018.
Minutes
The annual meeting was called to order by association President Cheri Taylor at 7:05pm, at Longfellow School. Thirty-five association households were represented either in person or by signed proxies.
The reading of the minutes of the 2014 annual meeting was waived by voice vote. Approval of the minutes was moved, seconded and carried without dissent.
Landscape Advisor Report
Judy Williams, Landscaping Representative, gave a detailed report the status of landscaping activity in 2015, and plans for 2016. In 2015 there were no major projects, only necessary repairs and regular maintenance contract work. Plans for 2016 were provided in a handout (copy attached to these minutes). Judy noted that she had moved the responsibility for lawn care from Professional Grounds to Sava Tree, at a slightly increased cost. Total projected budget for both contracts is $34,062.20. The contract with Professional Grounds is for $28,693.20 and that with Sava Tree is $5,369.00. That leaves $7014.80 for other needs, such as tree removal, in the 2016 HOA Budget of $41,077.00 for landscaping. One scheduled tree removal project is dead dogwood trees behind the uppermost string of homes.
Financial Report and Review of the 2016 Budget
The proposed HOA budget was presented by Assistant Treasurer Ron Taylor. A copy of Ron’s handout is attached to these minutes. The proposed budget is based on no increase in dues for 2016: each homeowner will be billed for $2035, the same dues as in 2015, for a total revenue of $75,295 to be raised from the 37 homes.
Total operating expenses are projected at $66,002. The only significant changes from 2015 are a decreased snow removal amount, based on mild weather predictions, and an increase in landscaping to start to cover needed maintenance on our aging trees.
The attachment shows the anticipated Special Assessment of $140,600. Note that that amount was later approved, but the payment schedule was modified to allow a three-payment schedule in addition to the two-payment schedule shown on the attachment. The proposed budget rebuilds the reserve fund to the amount specified on the five-year reserve plan, $55,019 at the end of 2016.
The proposed budget was moved, seconded and carried by a voice vote, without dissent.
Special Assessment Presentation and Maintenance Advisor Report
Maintenance advisor Terry Marlow made a PowerPoint presentation on the proposed rebuilding of the Kirby Road wall. Projected costs of the wall rebuild and associated costs were summarized as follows:
I. Construction Contract plus 15% $100,500
II. New Design Drawings 2,500
III. Building Permit and Expediter 1,750
IV. Engineering Oversight 5,000
V. Landscaping 8,000
Total $117,750
Terry also outlined next steps, after approval of the Special Assessment:
· Dadson Consulting agreed to provide revised drawings for the new foundation option at a cost of $2500.
· In order to obtain the needed County building permit, it was agreed by the HOA Board that we should use an experienced Expeditor at a cost of $1000. The permit costs approximately $750.
· To assure accurate construction which satisfies the design and meets County requirements, Dadson Consulting is willing to provide oversight during the construction process for $5000.
· Construction will likely remove or damage the holly trees bordering the wall replacement project. Cost to replace is estimated at $8000.
Homeowners asked several questions:
Q. Will we need a waiver to rebuild the wall to the former height?
A. While we believe we will not require a waiver for the height of the wall, the
requirement for a waiver will depend upon the County's interpretation of the
regulations governing the current building code.
Q. Bright Construction has had some problems here in the past.
A. All references and reviews were checked, and were uniformly positive.
Q. Does Bright Construction know that there wll be engineering oversight?
A. Yes.
Q. Is there a completion date specified in the Bright contract?
A. Yes.
Q. Why does Bright not have its own staff engineer?
A. Most customers, like us, want an independent engineer for design and
oversight.
Q. Will homeowners get periodic reports during construction?
A. Yes.
Q. Does the $8000 amount for trees include replacement?
A. Yes
Q Can the trees be moved to other sites on the HOA property?
A. Yes, to the extent that appropriate places are available. And homeowners
will be offered trees for their own properties.
Q. Could trees be offered to local schools?
A. Yes – will be pursued.
Assistant Treasurer Ron Taylor then presented a summary of Special Assessment Calculations (copy attached to these minutes). With contingencies of $4125 and the return of $18,715 to replenish the reserve fund the total needed from a Special Assessment is $140,600.
A roll call vote was taken on approval of the proposed Special Assessment. Results of the 35 voting units, homeowners present or providing proxies, was 23 Yes and 12 No. The association bylaws require a two-thirds positive vote of homeowners represented at the meeting for passage – in this case 24 Yes votes – so the motion did not pass.
Several homeowners expressed opinions on the Special Assessment proposal put forth by the HOA Board, generally suggesting that the schedule for collection of funds was too compressed. During discussion, a recommended change in the payment schedule was proposed:
Plan A for those willing to follow the original schedule of two payments of
$1900 each on April 1 and May 1, 2016.
Plan B for those desiring a longer payment time, three payments of $1267
each due on April 1, June 1, and August 1, 2016.
By unanimous consent, it was agreed to substitute this schedule in the original proposal and take a revote. One homeowner expressed concern about the definition of proxies provided.
The results of the roll call vote on the revised Special Assessment proposal were 30 Yes and 5 No – so the motion passed.
Nomination and election of one Board member to a three-year term, expiring in 2018
One nomination had been received prior to the meeting – Russel Jones, the incumbent Secretary of the Board. No additional nominations resulted from a call for nominations from the floor, and Jones was elected by a unanimous vote.
Adjournment
There being no additional business to come before the annual meeting of the Mayfair of McLean HOA, the meeting was adjourned. As previously noticed, the new Board met briefly afterwards to elect officers for 2016 and follow-up decisions made at the annual meeting.
